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Interest On CD Added After Maturity?

Friday, August 17, 2012 - 4:24 PM
I never heard of this and so not sure ehat the catch is if any. What question need to be ask for such a thing?
1
pld321288pld3212881 posts since
Aug 17, 2012
Rep Points: 1
1. Friday, August 17, 2012 - 6:29 PM
Some banks and credit unions will not add interest to your CD after the day it matures if the CD is closed during the grace period. This should be specified in your CD disclosure.

For example, assume your CD matured on August 10th, and the CD had a 10-day grace period. The CD will probably have been automatically renewed into a new term starting on the 10th. If you closed the CD on August 17th, your CD balance may not include any interest for those 7 days.

If you decide to close a CD when it matures, it's usually best to try to close it on or soon after the day it matures.
4
Ken TuminKen Tumin5,467 posts since
Nov 29, 2009
Rep Points: 124,994
2. Saturday, August 18, 2012 - 8:36 AM
I have never had a CD earn interest "after" the day it matures in the 7 - 10 day grace period.  It is usually stated in the disclosure.  We get all our interest up to the maturity day.  This is why I if I am going to close the accounts to take to another bank, I try to do it on the first day so it can start earning interest at the new bank or cu.  Any and all interest up to the maturity date always belongs to us and if it hasn't been sent monthly to our bank or in the mail, it must be included in the total balance in the check we receive.
3
paoli2paoli21,364 posts since
Aug 10, 2011
Rep Points: 5,979
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